Murphy Pohlad Asset Management LLC Purchases New Holdings in Automatic Data Processing, Inc. $ADP

Key Points

• Murphy Pohlad Asset Management acquired 4,660 ADP shares worth approximately $1.04 million in the second quarter, while institutional investors collectively own 80.03% of the company.
• ADP exceeded quarterly expectations with adjusted EPS of $2.64 and revenue of $5.47 billion, up 6.8% year over year. The company issued fiscal 2027 EPS guidance of $12.12–$12.34.
• ADP traded at $267.96 and announced a quarterly dividend of $1.70 per share, representing a 2.5% yield. Analysts maintain a consensus “Hold” rating with an average price target of $273.50.

Murphy Pohlad Asset Management LLC acquired a new position in shares of Automatic Data Processing, Inc. (NASDAQ:ADP - Free Report) during the 2nd quarter, according to the company in its most recent Form 13F filing with the Securities and Exchange Commission (SEC). The fund acquired 4,660 shares of the business services provider's stock, valued at approximately $1,044,000.

A number of other hedge funds and other institutional investors have also bought and sold shares of the business. California State Teachers Retirement System boosted its position in shares of Automatic Data Processing by 22,166.8% in the second quarter. California State Teachers Retirement System now owns 140,971,822 shares of the business services provider's stock worth $31,570,640,000 after purchasing an additional 140,338,719 shares during the period. BlackRock Inc. bought a new stake in shares of Automatic Data Processing during the 2nd quarter valued at $8,097,229,000. Bank of America Corp DE bought a new stake in shares of Automatic Data Processing during the 2nd quarter valued at $1,231,175,000. Deutsche Bank AG purchased a new position in shares of Automatic Data Processing during the 2nd quarter valued at $994,937,000. Finally, Northwestern Mutual Wealth Management Co. lifted its stake in shares of Automatic Data Processing by 6,493.0% during the 4th quarter. Northwestern Mutual Wealth Management Co. now owns 3,468,180 shares of the business services provider's stock valued at $892,120,000 after buying an additional 3,415,576 shares in the last quarter. Hedge funds and other institutional investors own 80.03% of the company's stock.

Insider Buying and Selling at Automatic Data Processing

In other Automatic Data Processing news, VP David Kwon sold 798 shares of Automatic Data Processing stock in a transaction on Thursday, August 20th. The shares were sold at an average price of $280.00, for a total value of $223,440.00. Following the transaction, the vice president directly owned 13,193 shares in the company, valued at approximately $3,694,040. The trade was a 5.70% decrease in their ownership of the stock. The transaction was disclosed in a document filed with the SEC, which can be accessed through this hyperlink. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Also, VP Brian L. Michaud sold 120 shares of Automatic Data Processing stock in a transaction that occurred on Friday, August 21st. The shares were sold at an average price of $279.70, for a total value of $33,564.00. Following the completion of the transaction, the vice president owned 18,442 shares in the company, valued at $5,158,227.40. This trade represents a 0.65% decrease in their ownership of the stock. Additional details regarding this sale are available in the official SEC disclosure. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Insiders have sold 33,773 shares of company stock worth $9,450,629 in the last 90 days. Company insiders own 0.20% of the company's stock.

Automatic Data Processing Price Performance

ADP traded down $9.66 during midday trading on Tuesday, hitting $267.96. 1,814,018 shares of the company traded hands, compared to its average volume of 2,996,843. The business has a 50 day simple moving average of $264.30 and a two-hundred day simple moving average of $231.15. Automatic Data Processing, Inc. has a 52-week low of $188.16 and a 52-week high of $299.22. The company has a market capitalization of $106.45 billion, a price-to-earnings ratio of 24.49, a PEG ratio of 2.52 and a beta of 0.82. The company has a current ratio of 1.05, a quick ratio of 1.05 and a debt-to-equity ratio of 0.82.

Automatic Data Processing (NASDAQ:ADP - Get Free Report) last released its earnings results on Wednesday, July 29th. The business services provider reported $2.64 EPS for the quarter, topping analysts' consensus estimates of $2.59 by $0.05. The business had revenue of $5.47 billion during the quarter, compared to analysts' expectations of $5.44 billion. Automatic Data Processing had a net margin of 20.11% and a return on equity of 71.34%. The company's quarterly revenue was up 6.8% on a year-over-year basis. During the same quarter in the previous year, the company earned $2.26 earnings per share. Automatic Data Processing has set its FY 2027 guidance at 12.120-12.340 EPS. On average, equities analysts forecast that Automatic Data Processing, Inc. will post 12.26 earnings per share for the current fiscal year.

Automatic Data Processing Dividend Announcement

The firm also recently announced a quarterly dividend, which will be paid on Thursday, October 1st. Stockholders of record on Friday, September 11th will be issued a $1.70 dividend. This represents a $6.80 dividend on an annualized basis and a dividend yield of 2.5%. The ex-dividend date of this dividend is Friday, September 11th. Automatic Data Processing's payout ratio is presently 62.16%.

Wall Street Analyst Weigh In

Several research analysts recently weighed in on the stock. BMO Capital Markets upped their target price on shares of Automatic Data Processing from $248.00 to $305.00 and gave the stock a "market perform" rating in a report on Wednesday, July 29th. Morgan Stanley raised their price target on Automatic Data Processing from $240.00 to $286.00 and gave the company an "equal weight" rating in a report on Thursday, July 30th. Stifel Nicolaus boosted their price objective on Automatic Data Processing from $260.00 to $285.00 and gave the company a "hold" rating in a research report on Thursday, July 30th. Wells Fargo & Company upped their price objective on Automatic Data Processing from $248.00 to $283.00 and gave the stock an "equal weight" rating in a research note on Thursday, July 30th. Finally, Weiss Ratings upgraded Automatic Data Processing from a "hold (c-)" rating to a "hold (c)" rating in a research report on Tuesday, July 21st. Three investment analysts have rated the stock with a Buy rating, eight have issued a Hold rating and one has assigned a Sell rating to the company. According to data from MarketBeat, the company has a consensus rating of "Hold" and a consensus price target of $273.50.

Automatic Data Processing Company Profile

Automatic Data Processing, Inc (ADP) is a global provider of cloud-based human capital management (HCM) and payroll solutions. Founded in 1949 and headquartered in Roseland, New Jersey, ADP began as a payroll processing company and has evolved into a diversified provider of workforce management, HR, benefits administration, tax and compliance services, and analytics for employers of all sizes.

ADP's product portfolio includes payroll processing and tax filing, time and attendance systems, benefits administration, talent management, and HR outsourcing.

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